What you need to bring and where to go

Opening a bank account takes one visit to a bank branch or credit union, or about 15 minutes online if you choose a digital bank. You will need a government-issued photo ID (a driver's license, passport, or state ID card), proof of your current address (a utility bill, lease, or recent mail from a government agency), and your Social Security number or Individual Taxpayer Identification Number.

Walk into any branch of a bank or credit union you choose, or visit their website to start online. A staff member will ask you which type of account you want — usually a checking account (for everyday spending and bill payments) or a savings account (for money you want to set aside). Many people open both at the same time. The staff member will fill out a form with you, verify your identity, and set up your account on the spot.

If you do not have a government ID yet, some banks and credit unions will work with you using other documents — ask before you go. If you have had banking problems in the past (like unpaid overdrafts), some banks may check a record called ChexSystems; a few banks work with people who have ChexSystems records, so you can ask about that too.

Key Takeaways

  • Bring a photo ID, proof of address, and your Social Security number or ITIN to open an account in person or online.
  • You can open a checking account, savings account, or both in a single visit or online session.
  • Banks and credit unions are different — credit unions are member-owned and often have lower fees, while banks are for-profit and have more branches.
  • Some banks specialize in working with people new to banking or those with past banking problems.
  • You will receive a debit card and checks (if you want them) within one to two weeks after opening.

The difference between a bank and a credit union

A bank is a for-profit business owned by shareholders. A credit union is a non-profit owned by its members — the people who have accounts there. This difference affects what you pay and what you get.

Credit unions typically charge lower fees for overdrafts, monthly maintenance, and ATM use. They often have lower minimum balances to open an account. Banks usually have more branches and ATMs in more places, which matters if you travel or move often. Banks also tend to have more online tools and mobile apps, though credit unions have improved this in recent years.

Both are insured by the federal government — the Federal Deposit Insurance Corporation (FDIC) insures banks, and the National Credit Union Administration (NCUA) insures credit unions. This means your money is protected up to $250,000 if the institution fails, which is extremely rare.

Checking accounts versus savings accounts

A checking account is designed for money you use regularly. You get a debit card to spend money at stores, online, or at ATMs. You can write checks. You can set up automatic payments for bills. There is no limit on how many times you can withdraw money or spend from it each month.

A savings account is designed for money you want to keep and grow. It earns interest — a small amount of money the bank pays you for letting them use your money. You can withdraw money, but some savings accounts limit you to six withdrawals per month (though this rule has become less common). Savings accounts usually have lower monthly fees than checking accounts.

Most people open both: a checking account for bills and everyday spending, and a savings account to build an emergency fund or save toward a goal. You can transfer money between them whenever you need to.

Online banks versus banks with physical branches

An online bank exists only on the internet — no building to walk into. You open the account on your phone or computer, deposit checks by taking a photo with your phone, and manage everything through an app. Online banks usually have no monthly fees and pay higher interest on savings accounts because they have lower costs.

A bank with branches has physical locations where you can walk in, talk to a person, and deposit cash or checks in person. This matters if you get paid in cash, receive checks regularly, or prefer to speak with someone face-to-face. Branch banks usually charge monthly fees unless you keep a minimum balance or set up direct deposit.

If you are new to banking, a branch bank or credit union may feel less overwhelming because you can ask questions in person. If you are comfortable with technology and want to avoid fees, an online bank works well. You can always start with one and switch later — moving your account takes about a week.

What happens after you open the account

Once your account is open, you will receive a debit card in the mail within one to two weeks. This card lets you withdraw cash from ATMs and pay for things at stores or online. You will also get a PIN (a four-digit code) to use at ATMs and sometimes in stores.

If you opened a checking account, you can order checks from the bank, though many people rarely use them anymore. You will receive online banking login information so you can check your balance, see your transactions, and set up bill payments from your computer or phone.

Your bank will assign you an account number and a routing number — nine-digit codes that identify your account. You will need these if someone wants to send you money directly (like an employer for direct deposit) or if you want to set up automatic payments to bills.

Banks that work with people new to banking

If you have never had a bank account before, or if you had problems with a previous account, some institutions specialize in working with you. Second-chance banking programs are offered by some banks and credit unions specifically for people returning to banking after a gap or those with past issues.

Community banks and credit unions in your area are often more flexible than large national banks. You can call ahead and ask: "Do you work with people who are new to banking?" or "Do you have second-chance accounts?" Many will say yes and explain what documents they need.

Some online banks also accept people with ChexSystems records or no banking history. Chime, LendingClub, and Varo are examples, though options change and vary by state. Ask about their specific requirements before you start the process.

Frequently Asked Questions

Do I need a minimum amount of money to open an account?

Most credit unions and online banks let you open with $0 or $25. Some large national banks require $100 to $300 to open. Call or check the bank's website before you go — the requirement varies by institution and sometimes by which type of account you want.

What if I do not have a Social Security number?

You can use an Individual Taxpayer Identification Number (ITIN) instead. Some banks will also accept a passport number or other government ID. Call the bank ahead of time to ask what they accept, because policies vary.

Can I open an account if I have been banned from banking before?

Yes. Some banks specialize in second-chance accounts for people with past banking problems. You may pay higher fees or have limits on your account, but you can rebuild. Credit unions and community banks are often more willing to work with you than large national chains.

How long does it take to use my account after I open it?

You can use it the same day if you open in person — the bank can give you a temporary debit card or let you withdraw cash when ready. If you open online, you can usually start using it within 24 hours, though your debit card arrives by mail in one to two weeks.

What if I want to close my account later?

Call the bank or visit a branch and tell them you want to close it. Withdraw or transfer any remaining money first. Make sure you have paid any outstanding checks or automatic payments. The bank will close it and send you a final statement.